Plexus warns of earnings miss as margins shrink, costs rise
Source - SMW
Oil and gas engineering services business Plexus Holdings said it expected its annual earnings to miss market expectations due to lower margins and higher overheads.
Plexus said its revenue so far for the year through June was running broadly in line with expectations.
However, it said margins had been hit because the company had chosen to showcase its technology and raise its profile regarding certain key contracts.
Overheads had been pushed up by refining baseline costs, with the increase partly due to bringing forward certain investment costs from the next financial year.
'We believe that the company's short-term financial performance should not be seen as the key performance indicator, with the critical strategic goal being the continued and growing interest in Plexus' POS-GRIP technology,' chief executive Van Bilderbeek said.
'The difference between market expectations and the likely reported full year numbers is in part due to investments that we have and will be making over the course of the period.'
At 8:24am: (LON:POS) Plexus Holding PLC share price was -5.5p at 43.5p